Windows 7 install on new harddrive won't work

Hi all, I recently built a new computer, this is not the first one I have built but it is the first time I have had problems with the operating system
The build:
MSI P55-CD53
Intel i5-750
ATI 5850 GPU
2 x 2gig 1600Mhz RAM
Sony Dual Layer DVD Drive
500Gb Hard drive
750W Powercool PC750UM, Modular

All is set, after a slight issue getting anything on the monitor (I put the RAM in wrong slot, rookie mistake) all looked to be going well, turn on, get to Bios and set time etc.
I then put the windows 7 DVD into the drive (note: It is the upgrade version but everything I read says I can use that to boot and install). When it boots from the DVD drive, instead of a nice blue screen with 'Setup' and the option to format the hard drive (like XP does) it went straight to a black screen with a white bar at the bottom saying 'Loading Windows' (is this how windows 7 does it?)this fills up, once or sometimes twice, then goes to 'Starting Windows' where it then freezes usually with a dot or two on the screen.
I decide maybe I read wrong and I cannot boot from the upgrade disks, so, I put in my windows XP CD (I wanted to avoid installing an old OS first as it had seemed possible). This did get to the blue screen I am familiar with. I picked the first option (Quick) and it got to 20% rapidly then froze. So, I restarted. This time I went with the slow second option. THe first time it loaded to 100% then froze. The second time it reached 100% then restarted the computer. Upon restart if I did not boot for the DVD it said 'Error loading operating System'
Does anyone know what the problem may be? I saw elsewhere that some people found it was the PSU, but all who had that issue seemed to be using an ASUS mobo and Corsair 950 PSU.
I have seen it mentioned that it may be a compatibility issue and in Bios I can set the SATA drives to compatibility mode or something, I had a quick look but could see no option there.

I am beginning to tear my hair out, any advise is appreciated!
Many Thanks

I think there are too many issues here ... you said it is an upgrade version of Win7..what you expecting to upgrade ?.... which version is it...and is it 32 or 64... I had a problem before trying to install win7 ultimate 32 on a 4GB machine ..I had to take 2Gig out ..install and then add them back after installation done ... I would suggest that you try a full Win7 on a 2Gig ram and see how do you get on ..I am sure there are many people here with better knoledge than mine and can help.

I tried both versions. Both had the same effect.

When you tried to install with 4 gig did you get a similar issue? Black screen with white windows loading bar?

The HDD is blank so I figuredthe upgrade DVD ay have an issue because of that, but from threads around the internet - including one here regarding a clean install on a blank HDD, all suggests the upgrade disk can boot and install on a blank HDD and as long as I own XP or Vista then it is a legit way of doing it. I do own an unused XP license but did not want to bother installing it first just to then install the Upgrade of Windows 7.

As mentioned in the post, in case the Upgrade was the problem I then tried to install XP which then failed too - though at least it reached the setup phhase

Take a look at these posts:

https://www.sevenforums.com/installat...-problems.html
Tutorial quick reference list for Installing Windows 7
Questions to use for help with Installation Issues
Clean Install Windows 7
USB Windows 7 Installation Key Drive - Create
Filling out System Specs

Thanks for the list, though I have read most of them - in fact it was the Clean install one that convinced me I could install on a blank hard drive.

One question, how do I change the SATA setting in BIos? I had a quick look last night but did not se anything obvious, just the area stating it is a SATA hard drive and also an area showing me which SATA the device is connected to

Admittedly I have not yet tried removing the extra stick of RAM as I am at work, but was hoping to get as many suggestions as possible here so that when I try the RAM if it does not work I am not left stumped.

It is also worth noting that I tried installing a friends full Windows Ultimate version (just to see if it would get any further than the Upgrade premium disk) and it did the same - black screen, white loading bar, followed by 'Starting Windows' and freezing.

For BIOS settings have look at the mobo manaul.